Calculate the equilibrium price and quantity

Assignment Help Business Economics
Reference no: EM132649146

A U.S. state decides to make itself more affordable and to protect its citizens by putting a price ceiling on electricity. The demand for electricity in this state is P = 70 - Q and the supply of electricity is P = 4 + .1Q, where quantity is measured in kilowatt-hours of electricity used and the price is cents per kilowatt-hour. Calculate the equilibrium price and quantity. What will be the quantity demanded and quantity supplied if the price ceiling is set at 7 cents per kilowatt-hour? 9 cents? 11 cents?

Reference no: EM132649146

Questions Cloud

Question - Make an adjusted trial balance : Question - Make an adjusted trial balance - On January 1, 2021, Red Flash Photography had the following balances: Cash, $22,000
What is tabithas optimum bundle : There are two goods X and Y. Tabithas Utilities are given by U = 1/3X2 + 2 Y1/2. If the price of X is $2 and the Price of Y is $0.75 What is Tabithas optimum b
Consumer optimal choice of consumption bundle : What is this consumer's optimal choice of consumption bundle? How much do they choose to work?
Question - Evaluation and testing of controls at Hales Ltd : Question - Evaluation and testing of controls at Hales Ltd - An assessment of the implications of each of the weaknesses you have identified
Calculate the equilibrium price and quantity : Calculate the equilibrium price and quantity. What will be the quantity demanded and quantity supplied if the price ceiling is set at 7 cents per kilowatt-hour
Make accounts receivable to accounts receivable estimates : Make accounts receivable to accounts receivable estimates in the general ledger and present the receivables above in the financial statements
ITSCM 314 Database Design and Administration Assignment : ITSCM 314 Database Design and Administration Assignment Help and Solution, University of Wisconsin-Whitewater - Assessment Writing Service
Effect on the price elasticity of demand for commuter rail : What effect on the price elasticity of demand for commuter rail is there likely to be from a decrease in the price of gasoline? Explain your answer.
Why is the work ethic important to a system privatization : Why is the work ethic important to a system privatization? How are glasnost and perestroika related to free enterprise?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd